Six Flags at Half Mast

[MountainDon]

Six Flags Inc. (SIX) announced yesterday that , barring a significant restructuring, it is likely to go bankrupt this summer. Although this news came out after the close of the market, shares dropped 10 percent to 18 cents in electronic trading. This follows a 32 percent drop this year. In mid-day trading on Friday, SIX is a smidgen over 14 cents.

The company's biggest worry is its looming debt. It has until August 15 to pay $287.5 million to holders of its "preferred income equity redeemable shares." With additional costs added in, Six Flags' liability may be as much as $315 million. With credit frozen and its own prospects bleak, it seems unlikely that the company will be able to make that deadline.

[BobHHowell]

I grew up near Atlanta and lived in Atlanta for about 15 years.  We have some fond memories of Six Flags. 

Six Flags sold its park near where we live in NE Ohio.  For several years it ran under the name Geauga Lake.  But that too shut down in 2007.  Last year the rides were sold for scrap.  Cedar Point -- which is not too far away -- was just too much competition I guess. 

http://www.geaugalaketoday.com/

If they do go bankrupt, let's hope someone will buy these parks to keep them going.  With frugality becoming a new found virtue, a day at Six Flags is a pretty great alternative to a vacation at Disney World, Sea World, etc., that costs a small fortune.

I would think with the right debt structure -- and a populace concerned with job stability -- Six Flags still has a viable business model.  You gotta think the Disney resorts and the higher end parks are really going to be hurting for revenue in the coming years as well.